Client Review Prep

Client Review Preparation

Core Concepts

Client Context Assembly

The foundation of review preparation is assembling everything the advisor needs to know about the client before the meeting. This context package draws from multiple systems and should be gathered systematically rather than ad hoc.

Data to assemble:

1. Client profile and household -- pull from CRM: names, ages, employment status, retirement dates, household members, service tier, assigned advisor, communication preferences
2. Investment Policy Statement (IPS) -- the governing document for the relationship: stated objectives, risk tolerance, time horizon, return targets, asset allocation targets with tolerance bands, investment restrictions, benchmark selections, liquidity constraints
3. Account inventory -- all accounts in the household: account types (taxable, IRA, Roth, trust, etc.), custodians, current market values, cash positions, cost basis summary
4. Recent life events -- any changes since the last review: job change, retirement, marriage, divorce, inheritance, birth of child, health event, home purchase or sale, business sale. These come from CRM notes, advisor logs, and financial planning system updates.
5. Prior meeting notes -- what was discussed at the last review, what action items were assigned, which items were completed. Unresolved items carry forward to the agenda.
6. Financial plan status -- if the client has a financial plan: probability of success, progress toward goals (retirement funding, education, legacy), any goals that have drifted off track since the last review
7. Compliance and administrative status -- date of last IPS update, date of last suitability questionnaire, advisory agreement renewal date, fee schedule, any pending compliance items

Assemble this data into a one-page client context summary that the advisor can review in under five minutes before the meeting.

Performance Review Preparation

Performance data is the centerpiece of most review conversations. The goal is not to re-create a full performance report (that is the domain of performance reporting and client reporting delivery), but to extract the key numbers and narratives the advisor needs for the discussion.

Data to collect:

• Period returns for each account and the consolidated household: quarter-to-date, year-to-date, trailing 1-year, since inception (or since last review date)
• Benchmark comparison: portfolio return versus the IPS-designated benchmark for each period
• Attribution highlights: which asset classes or positions contributed most to outperformance or underperformance. Focus on the two or three largest contributors and detractors -- the client does not need a 50-line attribution table in a meeting.
• Fees paid: advisory fees, fund expense ratios, transaction costs. Summarize total cost in dollars and as a percentage of AUM for the review period.
• Income generated: dividends and interest received during the period, withdrawal activity

Prepare the narrative: Translate raw numbers into a short (3-5 sentence) performance summary the advisor can use as a talking point. Example: "The consolidated household returned 4.2% for the quarter versus the benchmark's 3.8%, primarily driven by overweight exposure to international equities. Fixed income underperformed as rates rose, but the short-duration tilt limited the drag. Total fees for the quarter were $3,750 (0.15% of AUM)."

Allocation Drift Analysis

Before the meeting, compare each account's current allocation to its IPS target and identify any positions that have drifted beyond tolerance bands. This analysis feeds directly into rebalancing discussion points but does not re-derive the rebalancing math (see the rebalancing skill for methodology).

Steps:

1. Pull current holdings and market values by asset class from the PMS
2. Calculate current allocation percentages for each asset class
3. Compare to IPS target allocation
4. Flag any asset class where the drift exceeds the tolerance band (e.g., target 60% equity with +/-5% band; current 67% equity is 2% beyond the upper band)
5. Summarize drift in a simple table: asset class, target, current, drift, in/out of tolerance

If drift is beyond tolerance, prepare a rebalancing recommendation as a talking point. Include the estimated tax impact of rebalancing (realized gains or losses) for taxable accounts.

Talking Points Generation

Talking points are the structured notes the advisor uses to guide the meeting conversation. They should be specific to this client, not generic market commentary.

Categories of talking points:

1. Market commentary relevant to the portfolio -- select 2-3 market developments that directly affect the client's holdings or strategy. If the client is overweight technology, discuss tech sector trends. If the client holds municipal bonds, discuss the muni market environment. Avoid generic "the market was up 5%" statements.
2. Rebalancing needs -- if drift analysis identified out-of-tolerance positions, frame the rebalancing conversation: what to trim, what to add, estimated tax impact, rationale tied to the IPS.
3. Upcoming events -- RMD deadlines, estimated tax payment dates, option expirations, bond maturities, CD renewals, vesting events for RSUs or stock options, trust distribution dates
4. Action item follow-up -- status of any actions agreed upon at the last meeting: was the beneficiary update completed? Was the insurance review done? Was the estate plan referral followed through?
5. Life event implications -- if any life events have occurred, prepare talking points on financial implications: new retirement date changes the distribution strategy, inheritance needs to be integrated into the portfolio and plan, divorce requires account retitling and beneficiary updates

Proactive Recommendations

A well-prepared review goes beyond reporting what happened and proactively identifies optimization opportunities. The advisor should walk into the meeting with 2-3 specific, actionable recommendations tailored to the client's situation.

Common proactive recommendation categories:

• Tax-loss harvesting opportunities -- identify positions with unrealized losses that could be harvested before year-end. Note wash sale considerations and replacement security options. Reference the tax-loss-harvesting and tax-efficiency skills for methodology; do not re-derive here.
• Roth conversion windows -- if the client has a low-income year (early retirement, sabbatical, gap between retirement and Social Security), flag the opportunity to convert traditional IRA assets to Roth at a lower marginal rate. Estimate the tax cost and long-term benefit.
• RMD planning -- for clients age 73+ or approaching RMD age: calculate the upcoming RMD amount, discuss the timing of the distribution, evaluate whether to take it in cash or in-kind, consider qualified charitable distributions (QCDs) if the client is charitably inclined.
• Beneficiary review -- flag accounts where beneficiary designations have not been reviewed in over two years, or where a life event (marriage, divorce, birth, death) may have made the current designation inappropriate.
• Insurance and estate review -- if the client's net worth has changed materially, flag the need to review life insurance coverage, umbrella liability, and estate planning documents.
• Cash management -- if cash balances exceed the client's liquidity needs (as defined in the IPS), recommend deploying excess cash to the investment strategy.
• Concentrated position management -- if any single position exceeds a threshold (commonly 10-15% of portfolio), prepare a discussion on diversification strategies: systematic sales, exchange funds, hedging with options, charitable giving of appreciated shares.

Agenda and Meeting Package Assembly

Structure the meeting with a timed agenda so the conversation covers all important topics without running over.

Standard review meeting agenda (60 minutes):

1. Personal update and life event check-in (5-10 minutes) -- open with the client, not the portfolio. Ask about family, health, career, goals. Listen for new information that affects the financial plan.
2. Performance review (10-15 minutes) -- present the performance summary prepared above. Walk through returns relative to benchmarks, highlight key drivers, address any underperformance directly.
3. Allocation and rebalancing (5-10 minutes) -- show the drift analysis. If rebalancing is needed, present the recommendation and get client agreement.
4. Financial plan progress (10-15 minutes) -- review goal status, probability of success, any changes needed to contributions, spending, or timeline.
5. Proactive recommendations (10-15 minutes) -- present the 2-3 tailored recommendations prepared above. Explain the rationale, estimated impact, and next steps for each.
6. Action items and next steps (5 minutes) -- summarize agreed-upon actions, assign owners and deadlines, confirm the next review date.

Supporting exhibits to include in the meeting package:

• One-page client context summary
• Performance summary (returns, benchmark comparison, key attribution)
• Allocation drift table (current vs target vs tolerance)
• Financial plan snapshot (goal progress, probability of success)
• Proactive recommendation briefs (one paragraph each with estimated impact)
• Fee summary for the review period

Compliance Pre-Check

Before the meeting, verify that all compliance and administrative items are current. This prevents the advisor from making recommendations based on stale suitability data or expired agreements.

Pre-check items:

• IPS recency -- has the IPS been reviewed and signed within the past 12-24 months (per firm policy)? If not, add IPS review to the agenda.
• Suitability data -- is the client's risk tolerance, time horizon, and financial situation current? If not updated in over 12 months, add suitability re-evaluation to the agenda.
• Advisory agreement -- is the fee agreement current and signed? Are fees being charged correctly per the agreement?
• Disclosure delivery -- has the client received the current Form ADV Part 2A (or material amendment) and Form CRS? Annual delivery or material change delivery must be documented.
• Beneficiary designations -- have beneficiary designations been reviewed? Flag if never reviewed or if a life event has occurred since the last review.
• Trusted contact -- does the client have a trusted contact person on file per FINRA Rule 4512? If not, add it to the agenda.
• Required Minimum Distributions -- for clients subject to RMDs: has the current-year RMD been calculated and is it on schedule to be distributed by the deadline?

Document any compliance gaps found during the pre-check and add them as agenda items for the meeting.

Worked Examples

Example 1: Annual review for a retired couple

Scenario: Robert and Linda Chen, both age 72, retired three years ago. They have a joint taxable account ($1.8M), Robert's traditional IRA ($950K), Linda's Roth IRA ($420K), and a family trust ($600K). Their combined portfolio is $3.77M. The IPS targets 40% equity / 50% fixed income / 10% alternatives with +/-5% tolerance bands. Robert turns 73 in four months, triggering his first RMD. Their last review was six months ago. The CRM shows Linda had a hip replacement two months ago (noted by the advisor's assistant).

Key Review Elements:

• Context assembly: Pull the household profile showing four accounts, service tier (platinum), and the six-month-old meeting notes. The prior meeting flagged two action items: (1) update the trust's beneficiary designations after their grandson's birth, and (2) review umbrella insurance coverage. Check CRM for status of both.
• Performance: Consolidated household returned 2.1% for the trailing six months versus the blended benchmark's 2.4%. Fixed income allocation (53% actual vs 50% target) slightly underperformed due to rising rates. Equity (37% actual vs 40% target) outperformed but was underweight. Fees for the period: $9,425 advisory fee (0.50% annualized).
• Drift analysis: Equity at 37% is 3% below target (within the 5% band). Fixed income at 53% is 3% above target (within band). Alternatives at 10% are on target. No tolerance band breaches, but equity is trending toward the lower bound. Recommend monitoring; no rebalancing action required yet.
• Proactive recommendations: (1) RMD planning -- Robert's first RMD is due by April 1 of next year. Estimated RMD is approximately $36,900 based on the IRA balance and Uniform Lifetime Table divisor. Discuss timing: take before December 31 to avoid bunching two RMDs in the first distribution year. Consider a qualified charitable distribution if the Chens make charitable gifts. (2) Linda's hip replacement may trigger a review of health care cost assumptions in the financial plan. (3) Check whether the trust beneficiary update was completed per the prior meeting's action item.
• Compliance pre-check: IPS was last signed 18 months ago; due for re-review at this meeting. Suitability data last updated 18 months ago; add re-confirmation to the agenda. Robert does not have a trusted contact on file; Linda's is listed as their daughter. Add trusted contact for Robert.

Analysis: The meeting should lead with a personal check-in about Linda's recovery, then focus on three substantive items: Robert's upcoming RMD (time-sensitive), the IPS re-review (compliance-driven), and follow-up on the prior meeting's open action items. Performance and allocation are stable and require only a brief update. The agenda should allocate more time to the RMD discussion and IPS re-review and less time to performance, since there are no significant drift or performance issues.

Example 2: Quarterly review for a high-net-worth executive

Scenario: Priya Sharma, age 48, is a VP at a publicly traded technology company. Her portfolio consists of a taxable brokerage account ($2.1M diversified), a 401(k) at her employer ($1.4M), a backdoor Roth IRA ($380K), and unvested RSUs worth approximately $1.2M (vesting over the next 3 years in quarterly tranches). Her concentrated stock position in her employer is $850K (vested shares in the taxable account), representing 14% of total investable assets. The IPS targets 70% equity / 25% fixed income / 5% alternatives. The market has been volatile with tech stocks down 12% in the quarter. She has $180K in unrealized losses across three positions in her taxable account.

Key Review Elements:

• Context assembly: Pull Priya's profile, four-account inventory, RSU vesting schedule from the most recent equity compensation statement, and prior meeting notes. The last quarterly review flagged that the concentrated stock position was approaching the 15% threshold for discussion. No life events on record.
• Performance: Taxable account down 6.2% for the quarter due to tech exposure. 401(k) down 3.8% (more diversified). Roth IRA down 2.1% (conservative growth allocation). Consolidated portfolio down 4.1% versus the blended benchmark's -3.5%. The 60 basis point underperformance is primarily attributable to the concentrated employer stock position.
• Drift analysis: Current equity allocation is 73%, 3% above the 70% target (within the +/-5% band). However, equity concentration risk is elevated: employer stock at 14% of total assets is near the 15% discussion threshold. If the next RSU tranche vests ($100K), the combined employer exposure rises to approximately 16%. Fixed income at 22% is 3% below target.
• Proactive recommendations: (1) Tax-loss harvesting -- the $180K in unrealized losses across three positions represents a significant harvesting opportunity. Identify replacement securities to maintain market exposure while realizing the losses. At Priya's marginal tax rate (estimated

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Source & license

This open-source skill is cataloged on AgentStack and links to its original source — we do not rehost the code.

• Author: JoelLewis
• Source: JoelLewis/finance_skills
• License: MIT

Install and usage instructions live in the source repository linked above.